Zangeneh: We Can Increase Oil Exports by One Million Barrels with Sanctions Lifted

Bijan Namdar Zangeneh, Iran's Minister of Oil, stated in a press conference in Assaluyeh on March 16 that if sanctions are lifted, Tehran could increase its oil exports by up to one million barrels per day within a few months beyond current production levels. According to the official Islamic Republic News Agency, he also mentioned that this potential increase in exports would not affect oil prices. Currently, Iran, which is considered one of the major holders of oil and gas reserves in the world, is facing extensive sanctions that have, in various instances, reduced the country's daily exports to less than one million barrels. Similar reports were published last solar year when the Iranian government projected oil exports at 1.3 million barrels in its annual budget. In 2011, Iran exported 2.2 million barrels per day and in 2012, 1.1 million barrels per day. Meanwhile, oil prices have been steadily declining in recent weeks, aligning with predictions from the IEA that several oil-producing countries will face 'severe instability' this year. Zangeneh stated that Iranian oil has 'multiple markets' and that if sanctions are lifted and exports increase, they would have the capacity to export without oil remaining unsold. The Minister had previously mentioned the possibility of increasing oil exports if sanctions were lifted, stating in November that Iranian oil exports could double within two months if sanctions were removed. However, other analyses, including those from the International Energy Agency, suggest that Iran would need to undergo a period of investment in its oil fields to increase exports, which is time-consuming. The IEA also predicted at the end of December that global oil demand growth in 2015 would be lower than previously expected, reaching 900,000 barrels per day, which is 230,000 barrels less than earlier estimates. Zangeneh also discussed the increase in gas production in Iran, stating that the country has been able to produce 125 million cubic meters more gas this year, which is 25% higher than the initial forecast.